We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is WisdomTree Europe Hedged Equity ETF (HEDJ) a Strong ETF Right Now?
Read MoreHide Full Article
Designed to provide broad exposure to the European Equity ETFs category of the market, the WisdomTree Europe Hedged Equity ETF (HEDJ - Free Report) is a smart beta exchange traded fund launched on 01/04/2010.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
HEDJ is managed by Wisdomtree, and this fund has amassed over $1.95 billion, which makes it one of the larger ETFs in the European Equity ETFs. This particular fund, before fees and expenses, seeks to match the performance of the WisdomTree Europe Hedged Equity Index.
The WisdomTree Europe Hedged Equity Index is designed to provide exposure to European equities while at the same time neutralizing exposure to fluctuations between the Euro and the U.S. dollar.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.58% for HEDJ, making it on par with most peer products in the space.
HEDJ's 12-month trailing dividend yield is 2.98%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, Stellantis Nv (STLAM) accounts for about 9.54% of the fund's total assets, followed by Banco Bilbao Vizcaya Argentaria Sa (BBVA - Free Report) and Asml Holding Nv (ASML - Free Report) .
HEDJ's top 10 holdings account for about 45.34% of its total assets under management.
Performance and Risk
So far this year, HEDJ has added roughly 10.95%, and it's up approximately 21.98% in the last one year (as of 06/03/2024). During this past 52-week period, the fund has traded between $37.48 and $48.49.
The ETF has a beta of 0.90 and standard deviation of 16.19% for the trailing three-year period, making it a medium risk choice in the space. With about 169 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree Europe Hedged Equity ETF is a reasonable option for investors seeking to outperform the European Equity ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
JPMorgan BetaBuilders Europe ETF (BBEU - Free Report) tracks MORNINGSTAR DEV EUROPE TARGET MKT EXP ID and the Vanguard FTSE Europe ETF (VGK - Free Report) tracks FTSE Developed Europe All Cap Index. JPMorgan BetaBuilders Europe ETF has $8.17 billion in assets, Vanguard FTSE Europe ETF has $20.21 billion. BBEU has an expense ratio of 0.09% and VGK charges 0.09%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the European Equity ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is WisdomTree Europe Hedged Equity ETF (HEDJ) a Strong ETF Right Now?
Designed to provide broad exposure to the European Equity ETFs category of the market, the WisdomTree Europe Hedged Equity ETF (HEDJ - Free Report) is a smart beta exchange traded fund launched on 01/04/2010.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
HEDJ is managed by Wisdomtree, and this fund has amassed over $1.95 billion, which makes it one of the larger ETFs in the European Equity ETFs. This particular fund, before fees and expenses, seeks to match the performance of the WisdomTree Europe Hedged Equity Index.
The WisdomTree Europe Hedged Equity Index is designed to provide exposure to European equities while at the same time neutralizing exposure to fluctuations between the Euro and the U.S. dollar.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.58% for HEDJ, making it on par with most peer products in the space.
HEDJ's 12-month trailing dividend yield is 2.98%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, Stellantis Nv (STLAM) accounts for about 9.54% of the fund's total assets, followed by Banco Bilbao Vizcaya Argentaria Sa (BBVA - Free Report) and Asml Holding Nv (ASML - Free Report) .
HEDJ's top 10 holdings account for about 45.34% of its total assets under management.
Performance and Risk
So far this year, HEDJ has added roughly 10.95%, and it's up approximately 21.98% in the last one year (as of 06/03/2024). During this past 52-week period, the fund has traded between $37.48 and $48.49.
The ETF has a beta of 0.90 and standard deviation of 16.19% for the trailing three-year period, making it a medium risk choice in the space. With about 169 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree Europe Hedged Equity ETF is a reasonable option for investors seeking to outperform the European Equity ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
JPMorgan BetaBuilders Europe ETF (BBEU - Free Report) tracks MORNINGSTAR DEV EUROPE TARGET MKT EXP ID and the Vanguard FTSE Europe ETF (VGK - Free Report) tracks FTSE Developed Europe All Cap Index. JPMorgan BetaBuilders Europe ETF has $8.17 billion in assets, Vanguard FTSE Europe ETF has $20.21 billion. BBEU has an expense ratio of 0.09% and VGK charges 0.09%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the European Equity ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.